The Bank of Korea, South Korea's central bank, has stated that it will not consider adding Bitcoin to its reserves, citing the cryptocurrency's high volatility.
Central Bank of Korea's Stance
The Bank of Korea has declared that it will not incorporate Bitcoin as part of its reserve diversification strategy. According to the bank, Bitcoin does not meet the standards for reserve inclusion due to its significant volatility.
US Initiative and South Korean Response
Following the United States' decision to create a Bitcoin reserve with confiscated coins, South Korean industry leaders urged the Democratic Party to react. A party member inquired about the central bank's stance on adding Bitcoin to the national reserves.
Global Position on Bitcoin in Reserves
South Korea holds approximately $410 billion in total reserves, making it the world's 12th largest economy. In January, ECB President Christine Lagarde also reported that central banks will not add Bitcoin to their reserves, despite a proposal from the Czech National Bank's governor to invest billions in Bitcoin for diversification.
The Bank of Korea continues to view Bitcoin as unsuitable for reserve inclusion due to volatility concerns, amidst global initiatives to incorporate cryptocurrency into reserve assets.
